Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/122132 
Year of Publication: 
2013
Series/Report no.: 
Graduate Institute of International and Development Studies Working Paper No. 15/2013
Publisher: 
Graduate Institute of International and Development Studies, Geneva
Abstract: 
Guest-worker programs have been providing rapidly growing economies with millions of temporary foreign workers over the last couple of decades. With the duration of stay strictly limited by program rules in most of the host countries and wages paid to guest workers often set at sub-market levels, many of the migrants choose to overstay and seek employment in the underground economy. This paper develops a general-equilibrium model that relates the flow of guest workers transiting to the underground economy to the rules of the program, enforcement measures of the host country and market conditions facing migrants at home and abroad.
Subjects: 
temporary migration
undocumented workers
underground economy
JEL: 
F22
Document Type: 
Working Paper

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